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 Nuffield scholar mourns ethanol’s demise 

Nuffield scholar mourns ethanol’s demise

21 Jan, 2009 04:53 PM
Across the countries that 2007 Nuffield Scholar Ronald Thompson visited in his investigation of rural workforces, he found a common thread: workforces were stable or growing when farmers were profitable, and countries with profitable agriculture often had a biofuels industry.

"A problem with this country in general is that we haven't been prepared to take alternative energy on board," said Mr Thompson, who produces crops and cattle on his 935 hectare family farm at Chinchilla, Qld.

"Brazil went down this path in the seventies, when it decided to get away from oil dependence and created an agricultural economy around biofuels."

Australia may not be able to replicate the Brazilian experience, because of its small population base, but actively encouraging biofuel production could still contribute to the prosperity of farming communities while delivering cleaner fuel, Mr Thompson said.

"If you fill up your car or tractor with a blend containing a percentage of biofuel, then that percentage is helping an Australian farming community somewhere.

"The remaining percentage is helping some very wealthy Middle Eastern gentleman."

As fate would have it, Mr Thompson grows grain within striking distance of Dalby Bio-Refinery, the only grain-based ethanol start-up to survive falling oil prices and the credit crunch.

"Grain-based ethanol is likely to have a limited life, but in the short to medium term it’s going to be of benefit, particularly now there’s plenty of grain sitting around," he said.

"It's a stepping stone to the next stage in biofuels production."

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Date: Newest first | Oldest first
Grain derived ethanol may be a stepping stone Ronald but the trouble is that it doesn't benefit all agricultural industries, leads to higher food prices whilst the ethanol plants can't be converted to second generation technologies when they come on board.
Posted by David M, 22/01/2009 6:53:40 AM
Did he also look at those countries that give large subsidies to the farming sector and factor that information in?
Posted by jaimie, 22/01/2009 9:20:52 AM
Hey David M. How is your argument fairing at the moment with regards to food and fuel or did you miss the substantial decline in food and commodity prices? Strange how the food price and commodity price declined with oil isn't it. Perhaps the transport costs for it have gone down. Did you notice there has been an oversupply in grains now. Grain based biofuels have helped drive the increase in yields of agriculture in the US and eslewhere. Whilst Australian ag research has floundered, those abroad have reaped massive benefits. The grain based plants offer the feed industry a high-value feed supplement for their livestock. The starch is removed and converted to something useful. The problem we have in Australia is none of our ag leaders have any vision and work so hard to resist change rather than implementing it.
Posted by Food and Fuel Arguement fails, 22/01/2009 9:40:19 AM
Let's call a spade a spade: "actively encouraging biofuel production" means subsidising it ... heavily. See the report by the Global Subsidies Initiative, "Biofuels-At What Cost: Government support for Ethanol and Biodiesel in Australia", which can be downloaded for free from: www.globalsubsidies.org/en/research/biofuel-subsidies-australia
Posted by GSI, 26/01/2009 6:34:25 PM

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